Apple to pay back $32.5M for in-app purchases

January 15
10:33 PM 2014

Parents whose kids racked up hundreds of dollars in in-app spending sprees on Apple devices are getting a refund, according to VentureBeat.

In a consent decree with the Federal Trade Commission (FTC), Apple agreed to pay back the parents of kids who incurred big charges in in-app buys without explicit consent. The tech giant is required to shell out at least $32.5 million and notify involved consumers about the refunds. Any funds that the company does not give out within the year must be given to the FTC, the report detailed.

In 2013, Apple settled a lawsuit over the same issue. The company gave out iTunes cash and credits refunds to parents who filed a suit over high-priced in-app purchases. The said refund is to be paid out this year, the report explained.

The issue here revolves around the way children could go round the parental consent requirement when making in-app purchases. After typing in the password on an iOs gadget, the user has 15 minutes to make further purchases without verification steps. Children were reportedly using the 15-minute window to buy virtual goods in mobile games. The in-app charges range from $0.99 to $100. One parent reported that their kid spent $2,600 on in-app buys in just one game, VentureBeat reported.

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